Starmer offered large cuts to the taxes of the US in exchange for the lower Trump rates | Trump rates

The large US technological companies have been offered a significant tax cut from Keir Starmer in exchange for the lower rates from the administration of Donald Trump while the United Kingdom plays it for a global commercial war.

The Guardian understands that the government of the United Kingdom is willing to reduce the main rate of its tax on digital services (DST) in an attempt to appease the President of the United States, while applying the withdrawal to companies from other countries.

The move, which would represent a significant concession for US technological companies, comes after the prime minister has decided not to completely abandon the tax as it currently collects £ 800 million a year and the government’s finances are already extended.

While the White House is preparing to impose global commercial barriers that could throw the tax and expenditure plans of Labor in the chaos, the experts have warned that the collection of 25% Trump only on cars imports could put 25,000 jobs in the United Kingdom at risk.

The president reported the punitive rate of 25% on all the cars imported in the United States last week, as part of the accumulation of a historic declaration at the Rose Garden of the White House on Wednesday.

When it is aimed at the nation on what the White House calls “Liberation Day”, Trump should slap the rates on imports from dozens of rival economies, although it is not clear whether they will be uniform or vary according to the country.

The main economies including the EU should therefore react with their rates, while at the same time they negotiate in the hope of winning exemptions. The United Kingdom has not threatened to go back so far, even if Starmer said he is “keeping all the options on the table”.

The sources of Downing Street have confirmed that the United Kingdom has reached a large agreement with the US counterparts on a commercial agreement, focusing on technology, which hopes can help the United Kingdom to obtain a cut from rates. The interviews between the officials will continue.

The commercial offer of the United Kingdom is understood to include a proposal to expand the DST to bring smaller companies within the scope, which means that they would contribute to a tax socket that should increase to £ 1.2 billion per year by the end of the decade.

As a result, the 2% sampling on revenues of the United Kingdom of large US technological companies could fall. Five said that they pay the tax – Amazon, Meta, Alphabet, Ebay and Apple – and some have put pressure on the government to pay less, claiming that it discriminates against the largest companies and should apply to profits rather than revenues.

Tax experts say that Elon Musk’s X has like to pay for the tax in recent years, but the company has not said it publicly. The technological activities that generate over £ 500 million revenues all over the world and over £ 25 million from UTI’s users are responsible.

Sources of the government have suggested that the expansion of the scope of the tax would mean that some technological companies in other countries should now pay, helping to deal with the topic of the equity made by the White House.

Trump has complained of the impact that DST worldwide are having on US companies. In February he issued an executive order – entitled “Defense of American companies and innovators from foreign extortion and unjust fines and penalties” – threatening rates in retaliation.

No 10 remains confident of being able to guarantee exemptions once a commercial agreement has been signed, but believes that Trump’s attention on a “big bang” of announcements means that the United Kingdom should initially prepare for the rates of 20% on all the goods that enter the United States.

The commercial secretary, Jonathan Reynolds, said that the United Kingdom was “the best possible position of any country to reach an agreement” for lifting duties, while officials cited the commitment of the President of the United States to “be kind” for the countries that had a balanced trade with the United States.

But with Trump’s car rates that should come into force tomorrow, the 3 Aprilthinkank the Institute for Public Policy Research (IPPR) warned that 25,000 jobs in self-producers based in the United Kingdom depend strongly on export to the United States and could be threatened.

One in eight car built in the United Kingdom is sold to US buyers. Pranesh Narayanan, Ippr’s research companion, said: “Trump rates have enormous potential to completely destabilize the United Kingdom’s automotive production industry, hitting tens of thousands of jobs and jeopardizing the government’s growth plans”.

It is also believed that the United Kingdom has made concessions on agriculture, with rates on the imports of US beef, chicken and other meat in the United Kingdom to be lowered. The move is likely to further affect farmers, who have already attacked the government for its changes to the tax rules of the inheritance for agriculture.

However, sources said that animal welfare standards and hygiene were “an absolute red line”, which means that the ban on importing beef treated with hormones and chicken washed with chlorine will remain in place.

While the ministers prepared for the impact of the Trump commercial war, however, the economists warned that the United Kingdom economy is likely to be affected, even if it dodges the direct rates.

John Springford, of the Center for European Reform, said: “At least, Trump’s commercial wars make even more likely that further spending cuts or tax increases arrive in the autumn budget – We simply do not know how much in this phase”.

He added that even if the United Kingdom was not affected by rates, “the much larger costs would derive from a growing global commercial war, even if an agreement is concluded or the United Kingdom is not avenged. The major commercial barriers would damage the demand in the EU and the United States, with KNOCK-ON effects for British exports”.

Goldman Sachs analysts have revised their predictions for the United Kingdom economy this year from 0.9% to 0.8% on Tuesday, warning the pins of broader commercial tensions, even if Reynolds manages to raise direct rates.

Emily Fry, a senior economist of the foundation of the resolution, said: “Even if the sensitive strategy of the United Kingdom to avoid the Tit-Pat rates repays, as a small open economy, will not be immune to the impacts of the interruptions of the supply chain and winds of global growth following the US tariffs and possible retaliation.”

When the office for the liability of the budget (OBR) is delivered His forecasts next to Rachel Reeves’ Spring Declaration Last week, he warned that a Tit-Per-Tat commercial war could improve his projections.

The member of the OBR Committee David Miles stressed that the forecast on Tuesday, underlining that the rates of 20-25% in the United Kingdom, maintained for five years, would have eliminated £ 10 billion £ Headroom, the chancellor left against his auto-imposed tax rules-if he would underline that it would be “in some way a very extreme hypothesis”.

Government professionals rejected the suggestions that any economic agreement would depend on the approach of the united kingdom to freedom of speech, saying that they were “completely not connected”. Reynolds said that the question was not “a relevant factor” in commercial negotiations.